Members of the Writers Guild of America plan to go on strike on May 2 in retaliation against low salaries and wages.
Some big-name companies like NBC are looking ahead at upcoming shows to decide which ones can be put on the air without the use of guild writers.
However, a strike of this sort already happened back in 2007 and 2008. According to estimates conducted by the Milken Institute, the ‘100-day work stoppage’ had cost the industry around $2 billion.
Darrell Miller, a managing partner and head of the entertainment practice at the Fox Rothschild LLP law firm, said, “The digital revolution is catching up with TV, but the economic models haven’t.”
Writers are being paid less from cable channels and streaming services and the guild said that payments, “haven’t kept up with the growth of those services.”
The organization said, “In a time of unprecedented demand, TV writers are, illogically, earning less.”
A few solutions to the issue have been brought to the forefront. For example, the Alliance of Motion Picture & Television Producers (AMPTP) said one of the solutions could be that writers don’t have to be locked in exclusively to a show. This will allow writers to have the opportunity to be committed to multiple jobs and earn more money.
But producers said that the guild has too many demands, including higher salaries for every type of writer.
The AMPTP said, “The WGA broke off negotiations at an early stage in the process in order to secure a strike vote rather than directing its efforts at reaching an agreement at the bargaining table.”
However, a compromise could still unwrap in the weeks leading up to the strike.
See the full story on Bloomberg.com.